Odisha Unveils Roadmap for $1 Trillion Chemical Economy

22 Oct 2026, 09:29 by Vinay Kakkad · KalingaTV

Mumbai: Odisha has outlined a major economic realignment aimed at moving beyond raw mineral output toward high-value chemicals and petrochemicals, targeting a central role in India’s drive toward a USD 1 trillion chemical sector by 2040.

Speaking at the opening session of India Chem in Mumbai, Chief Minister Mohan Charan Majhi stated that Odisha’s dominance in aluminium, steel, and core mineral processing provides a captive market for chemical inputs. The state’s metal manufacturing base already consumes large volumes of industrial gases, process acids, and water-treatment formulations, which the administration plans to leverage as baseline demand for downstream chemical plants.

The state’s capital pipeline reflects this focus across both domestic and overseas channels:

Overall Inflows: Total investment proposals submitted to the state have topped ₹22.50 lakh crore, with projects exceeding ₹12.50 lakh crore cleared through the High-Level Clearance Committee.

Rapid Execution: Over a 30-month span (two and a half years), state facilitation enabled 204 industrial facilities to receive approvals, accounting for ₹3.05 lakh crore in direct investment commitments.

Global Mobilization: A state delegation visit to the United Arab Emirates in September generated roughly ₹2.5 lakh crore in project commitments. This includes a landmark memorandum of understanding with Abu Dhabi’s International Holding Company (IHC)—identified in initial wire records as International Bonding Company—representing an estimated ₹2.10 lakh crore (USD 30 billion) across critical minerals, chemicals, and petrochemical production.

Several key corridors are anchoring this heavy-industry transition:

Lakhanpur: Bharat Coal Gasification and Chemicals Limited is developing a technical-grade ammonium nitrate plant, launched by Prime Minister Narendra Modi in June 2026.
Talcher: Development continues on coal gasification infrastructure dedicated to chemical fertilizer manufacturing.
Gopalpur: Industrial zones are designated for marine-linked manufacturing, chlorochemical lines, green hydrogen, and green ammonia synthesis.

To support investor plant development, the state is extending capital investment subsidies, power-tariff exemptions, employment-linked financial incentives, and state goods and services tax (SGST) concessions. Operational projects will also be supported by local technical and research infrastructure, including the Central Institute of Petrochemicals Engineering and Technology (CIPET) and the Institute of Chemical Technology (ICT).